POLICY: FUNDRAISING Document number
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1 POLICY: FUNDRAISING Document number Custodian Responsible Division Status Approved by DVC: Internationalisation, Advancement and Student Affairs Development and Fundraising Approved MEC Date of approval 4 December 2008 Amendments November 2010 Dates of amendments Review date 2017 UJ documents (e.g. Policies, Regulations, Guidelines, Contracts) UJ Statute; UJ Vision and Mission; UJ Strategic Objectives; UJ Financial Policies and Procedures; UJ Policy Stewardship and Donor Recognition; UJ Policy Naming and Renaming of Facilities, Property and Events; UJ Terms and Conditions of Related documents 0 Other (e.g. Legislation, DoE and HEQC directives and guidelines)
2 Service Stakeholders affected by this document (units and divisions who should be familiar with it): Website address of this document: Council. Senate. Management Executive Committee. Subcommittees of Senate. Executive Dean and Deputy/Vice- Deans. Executive Directors and Directors. Heads of Departments. Institutional Forum. Student Representative Council. Student Bodies. Academic Employees (e.g. researchers). Non-Academic Employees (e.g. project managers). Intranet 1
3 CONTENTS 1. PREAMBLE 3 2. PURPOSE 3 3. SCOPE 3 4. DEFINITIONS 3 5. RULES 4 6. CATEGORIES OF FUNDRAISING PROJECTS 5 7. PROCESS 6 8. TAX DEDUCTIBILITY 6 9. RESPONSIBILITIES OF THE DEVELOPMENT OFFICE GOVERNANCE 7 2
4 POLICY ON FUNDRAISING 1. PREAMBLE In an increasingly competitive and changing market, it is imperative that the University of Johannesburg plans and executes its fundraising processes strategically. Fundraising is therefore coordinated and facilitated through the Development and Fundraising Office of the Division for Institutional Advancement on the basis of stated needs as determined by the Management Executive Committee (MEC) of the University. In the context of declining State subsidies (in real terms), inelastic fee income and the need to diversify the funding base, fundraising by the University is a strategically essential activity. It is important that all stakeholders of UJ understand how the University s fundraising processes and underlying approaches work. This ensures proper co-ordination of fundraising activities, avoids duplication, creates maximum alignment between projects and potential donors, and allows for sound and sustainable relationships between the University and its existing as well as its potential donors. This Policy also bears reference to the Stewardship and Donor Recognition Policy as well as the Naming and Renaming of Facilities, Property and Events Policy. 2. PURPOSE The purpose of this policy is to: 2.1 Serve as a common framework and directive for all fundraising activities and procedures. 2.2 Promote coherence and uniformity in the way that fundraising is implemented throughout the institution. 2.3 Serve as a quality assurance mechanism to promote and manage the quality of fundraising activities and external stakeholder relationships. 2.4 Provide direction in respect of the fundraising planning and interdepartmental co-operation. 2.5 Ensure effective communication (internally and externally) about the principles and protocols on which the fundraising activities of the University are founded. 2.6 Promote consistency in methods of work across all departments, faculties and campuses. 3. SCOPE This policy has institution-wide application pertaining to any activity aimed to raise funds on behalf of or using the name and branding of the University. 3
5 4. DEFINITIONS 4.1 interests means the financial wellbeing, infrastructure, facilities, educational task, research and development focus, community engagement activities and related operational matters of the University of Johannesburg. Fundraising activities are in line with the University s mission, vision, values and strategic objectives. 4.2 fundraising means actions to obtain donations and mobilize resources for stated fundraising needs of the University of Johannesburg, undertaken either by the Development and Fundraising Office or by employees, students or stakeholders of the University with the coordination, support, facilitation and management of the Office. 4.3 fundraising environment means donors who may be individuals or corporate entities that give cash and/or in natura donations for a specific project or purpose, that focuses on teaching and learning, research and innovation, community engagement and other institutional developmental needs. 4.4 in natura donations means donations of a non-monetary nature that benefit the University of Johannesburg. 4.5 Development Office refers to the Development and Fundraising Office. 5. RULES 5.1 Fundraising in the University or for the University is coordinated by the Development Office. 5.2 Neither the Development Office nor any employee or registered student of the University receives any commission (of whatever nature) on donations received. 5.3 All donations are used in the manner and for the purposes as stipulated by the donor and/or in accordance with the terms of the project application. 5.4 Naming rights are negotiable, depending on the size of the donation and whether the donor falls within the criteria outlined in the University s Naming and Renaming Policy, as such, requests of this nature will serve before Naming Committee for their input. 5.5 The Development Office must be informed and the Office must keep an accurate and up-to-date database of fundraising initiated or undertaken on behalf of the University by employees or students (see 5.5 and 5.6) or stakeholders, so that the Office can provide necessary or required support, advice or coordination in respect of such fundraising. 5.6 No student is allowed to contact or work directly with a new or existing donor. 5.7 All student and donor interactions have to be overseen by a UJ staff member and meetings, interviews and engagements have to be conducted in the presence of a staff member, after the Development Office has been consulted. 5.8 The person or collective of persons tasked with the responsibility of fundraising for a particular project (see 7 below) is responsible to the appropriate member of the Executive Leadership Group for executing 4
6 the project, spending the funds as stipulated and reporting fully to the donor via the Development Office in accordance with the conditions stipulated by the donor. 5.9 No existing donor may be approached by an employee, student or stakeholder of the University unless the Development Office has been consulted on such approach. A database of all current UJ donors must be available at the Office If a potential donor is identified for stated needs, the Development Office must be informed immediately Since in natura donations may have cost implications for the University, the Development Office must first facilitate the assessment and approval of such donations by the intended beneficiaries and the designated asset management official before they may be accepted Excluded from the provisions of this Policy are funds raised through consultation and through solicited research grants from statutory bodies. Such research funds are managed and recorded by the Research and Innovation Office All donations must be deposited into the Institutional Advancement Trust Account (cost centre number: ) where after it will be transferred to the relevant cost centre number for the specific project. No donations may be deposited direct in the normal operational budget cost centre The Development Office must be notified by the recipient of all cash and in natura donations as soon as they are received Ad hoc cash and/or donations made to units without the involvement of the Development Office must be reported to the Office immediately by the recipient. The Office will request the relevant tax certificate from the Finance Division, thank the donor concerned appropriately in terms of the University s Stewardship Policy and add the donor to the database of current UJ donors Processes and procedures for fundraising contained in this Policy must be adhered to at all times. 6. CATEGORIES OF FUNDRAISING PROJECTS 6.1 Priority projects Priority projects are key institutional projects or initiatives identified by the Management Executive Committee that are crucial to the success of the University s strategic goals and planning. Such projects will receive the priority attention of the Development Office and will be coordinated, planned and facilitated by the Office. Where appropriate, specific project steering committees may be formed to assist with the planning and development of the projects. 6.2 Core projects Core projects are those that support the University at an institutional level on an ongoing basis and as such are always central to the annual operating budget. They supplement annual budget allocations and may be incorporated into annual strategic objectives as determined by the 5
7 Executive Leadership Group from time to time. They do not require a dedicated and programmatic fundraising strategy, but rather are folded into continual fundraising efforts. 6.3 Faculty projects Faculty projects are those that support the academic core functions within a faculty and may be of an ongoing nature or identified as such from time to time as part of a faculty s strategic planning. The Development Office will provide support and facilitation for fundraising for such projects, without the dedicated and programmatic focus that it devotes to priority projects and core projects. 7. PROCESS 7.1 An individual, unit or division that wishes to apply for a fundraising project to be considered as a priority project must provide a motivated application to the Development Office and the appropriate member of the Executive Leadership Group, who in turn presents the application to the Management Executive Committee (MEC) at the first MEC meeting hosted in February of each year. All such applications for priority projects must be channelled through the Development Office, which will ensure that all available information is contained in the application to assist the Committee in making its decision. 7.2 Once the MEC has identified one or more priority project(s) for a particular year, the Faculty/Division will second a manager to each project. Such Project Manager collaborates closely with the Development Office, which provides the necessary support to ensure full project planning, implementation and execution. 7.3 The Development Office will collect progress reports from each Project Manager to submit to the Deputy Vice-Chancellor (Internationalization, Advancement and Student Affairs) the regularity of which is determined by the Deputy Vice-Chancellor. The Development Office assists with the compilation of such progress reports. 7.4 The Development Office coordinates, supports, or facilitates all other fundraising in accordance with procedures and processes it determines in consultation with the Deputy Vice-Chancellor (Internationalisation, Advancement and Student Affairs) and the MEC. 7.5 The Development Office provides an annual report on fundraising to the MEC. 8. TAX DEDUCTIBILITY Where applicable, tax certificates may be issued as follows: Donations originating from South Africa that qualifies for tax deductibility will, in terms of Section 18A of the Income Tax Act, be issued a tax certificate by the Finance Office Donations originating from South Africa may be subject to the Value Added Tax Act, and as such, at the commencement of discussions and 6
8 before finalisation of negotiations, the DVC: Finance must be consulted, to allow for determination of tax and VAT implications. 8.2 Donations originating in foreign countries will be routed through a registered professional organisation with the necessary expertise. Tax certificates are issued by that organisation. 9. RESPONSIBILITIES OF THE DEVELOPMENT OFFICE The Development Office has the following responsibilities: (i) Raising priority and core project funds; (ii) Supporting faculty and other institutional projects as required; (iii) Evaluating the suitability of projects for fundraising; (iv) Coordinating continuous interaction with existing donors; (v) Identifying and canvassing new donors; (vi) Facilitating relationships between donors and internal stakeholders; (vii) Matching projects with donors; (viii) Maintaining a current database of donors; (ix) Managing a comprehensive national and international database of potential donors; (x) Requesting the issue of tax certificates and conducting or guiding follow-ups; (xi) Providing appropriate recognition to donors; (xii) Advocating for the development of projects that address the needs of the institution and of the country; (xiii) Reporting on fundraising; (xiv) Providing support for the development of proposals for fundraising; and (xv) Providing appropriate professional development for executives. 10. GOVERNANCE This policy is approved by the Management Executive Committee, which also approves amendments to the Policy. The implementation of the Policy is the responsibility of the Senior Manager: Development and Fundraising and the Executive Director: Advancement. Amendments approved by the MEC on 18 February
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